Every transfer of immovable property must be registered under the Registration Act, 1908. During an encumbrance check, we verify the primary "Kewala" (Sale Deed) and all preceding deeds at the jurisdictional Sub-Registrar’s Office (SRO). This involves checking the Book 1 indices to confirm that the deed was properly executed, the full consideration was paid, and the stamp duty was accurately discharged according to the Bihar government's prevailing circle rates. We look for specific details like the Deed Number, Thana Number, Plot/Khesra Number, and the boundaries (Chauhaddi) described in the document. Any discrepancy between the boundaries mentioned in the deed and the actual physical site can lead to boundary disputes, making this verification critical for future peace of mind.

A core objective is to identify if the property has been pledged as security for a loan. We search for Memorandums of Deposit of Title Deeds or registered Mortgage Deeds. In Bihar, while many banks now register their charges, "Equitable Mortgages" (created by depositing original deeds) might not always appear in SRO indices immediately. Therefore, we investigate the Non-Encumbrance Certificate (NEC) for a minimum of 13 to 30 years. This search reveals "charges"—legal interests created in favor of third parties, such as banks or financial institutions. If a property is found to have an existing charge, it cannot be legally sold until a "No Objection Certificate" (NOC) or a "Full Satisfaction of Charge" memo is obtained from the lending institution.

A property might have a registered deed but still be embroiled in a "Title Suit" or "Partition Suit." We conduct a search in the local Civil Courts (Civil Judge Senior and Junior Divisions) and the District Court having jurisdiction over the property. This is vital to check for Lis Pendens—a legal principle where the status of a property cannot be changed while litigation is pending. We look for stay orders, temporary injunctions, or execution proceedings. Furthermore, we verify records at the Land Reforms Deputy Collector (LRDC) and Additional Collector (AC) courts, as Bihar sees significant litigation regarding land ceilings and pre-emption rights. A clean registry record is useless if a court has already passed an order restraining the sale of the asset.

Even a clear private title can be nullified if the State has initiated land acquisition proceedings. We verify if the land is subject to acquisition under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act. This involves checking notices issued by the District Land Acquisition Officer (DLAO) or bodies like the Bihar State Housing Board and Patna Metropolitan Area Authority (PMAA). If the land is part of a "Notified Area" for infrastructure projects like highways, airports, or industrial corridors, the buyer risks losing the property to the government. We ensure no preliminary notifications (Section 4) or declarations (Section 6) have been issued that would restrict the owner's right to transfer the property.

The "Nature of Land" (Kism) determines its usability and legality for specific purposes. In Bihar, land is often classified as Bhit (Agricultural), Basit (Residential), or Gair Mazarua (Government land). We verify the Khatiyan to ensure the land is not Gair Mazarua Aam (Public land) or Gair Mazarua Khas (Government-owned land formerly held by landlords). Selling such land is illegal. Furthermore, we check if the land is "Bhoodan" land or "Ceiling Surplus" land, which cannot be sold to private parties. Misclassification is a common fraud; a seller might present agricultural land as residential to command a higher price, but the buyer will face legal hurdles during mutation or when seeking building plan approvals.

While a Sale Deed proves a transaction, Mutation (Dakhil-Kharij) proves the update of the government's revenue records. We check the Register-II (Mutation Register) maintained at the Circle Office (Tehsil). We verify that the seller’s name is recorded as the current "Ryot" (taxpayer) and that the Lagan (Land Revenue) has been paid up to date. A valid "Malguzari" receipt is essential. In Bihar, if the mutation is not complete, the seller does not have the legal "Jamabandi" number required to execute a valid sale. We cross-verify the digital records on the Bihar Bhumi portal with the physical registers to ensure there are no "Correction Slips" (Parimarjan) pending that might alter the ownership status or area of the plot.

Legal title must be supported by "Khas Mahal" or physical possession. We investigate who actually occupies the land. Under Indian law, "Adverse Possession" can become a legal headache if a third party has occupied the land openly and continuously for over 12 years. We verify if there are any "Bataidars" (sharecroppers) who might have statutory rights under the Bihar Tenancy Act. An encumbrance check includes a local inquiry to confirm that the seller is in "peaceful and vacant possession" of the property. If the property is tenanted, we review lease agreements to ensure the buyer isn't inheriting a "protected tenant" who cannot be easily evicted under the Bihar Buildings (Lease, Rent and Eviction) Control Act.

Certain lands in Bihar are subject to transfer restrictions under specific statutes. For example, land belonging to members of Scheduled Castes (SC) or Scheduled Tribes (ST) cannot be transferred to a non-SC/ST person without the prior permission of the District Collector under Section 46 of the Chota Nagpur Tenancy (CNT) Act or similar provisions in the Santhal Parganas Tenancy (SPT) Act (where applicable). Similarly, properties belonging to Religious Trusts or the Waqf Board require specific sanctions for sale. We check for "Prohibited Property" lists maintained by the Registration Department. Ignoring these statutory hurdles makes the sale void ab initio (legally void from the beginning), leading to the immediate cancellation of the registry and potential criminal charges.